Home Business Finance Minister praises FBR as tax revenues hit historic high

Finance Minister praises FBR as tax revenues hit historic high

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Pakistan recorded the highest-ever tax collection for the month of December, as the Federal Board of Revenue (FBR) collected Rs1,427.1 billion in December 2025, prompting praise from Finance Minister Senator Muhammad Aurangzeb who directed the tax authority to further accelerate revenue collection efforts.

Commending the performance of FBR field formations, the finance minister said the record-breaking collection reflected the success of the government’s fiscal reform agenda, improved tax compliance, effective enforcement and ongoing digital reforms.

Addressing FBR teams and field formations via video link, Aurangzeb said significant progress had been made over the past 18 months, resulting in highly encouraging revenue figures for December 2025. He noted that the digitalisation of the economy, promotion of cashless transactions and strong enforcement measures, implemented without disrupting business activity, had begun to deliver sustainable results.

During the briefing, the minister was informed that FBR achieved 99 percent of its monthly target of Rs1,446 billion in December, marking the highest tax collection ever recorded in the month of December in any year.

According to the briefing, the Inland Revenue Service also showed strong performance by collecting Rs1,308 billion against a target of Rs1,310 billion, achieving 99.8 percent of the target. On a month-on-month basis, tax collection increased by 59 percent, rising from Rs898 billion in November to Rs1,427.1 billion in December.

The finance minister was further briefed that income tax collection saw the highest growth, increasing by 107 percent from Rs402 billion in November to Rs831.5 billion in December. Sales tax collection rose by 25 percent to Rs403.7 billion, while federal excise duty increased by 6 percent to Rs72.8 billion. Customs duty collection also recorded a 15 percent rise, reaching Rs118.9 billion.

Officials told the minister that the results reflected continuous monitoring by the FBR Board and the Ministry of Finance’s reform-driven strategy, pointing to clear progress towards stronger tax compliance, improved enforcement and institutional accountability. The briefing stressed that improved compliance and effective enforcement remained the only sustainable path to reducing the tax burden on the formal sector.

The finance minister urged FBR field formations to further intensify their efforts and work harder to deepen and broaden the tax base. He expressed confidence that the FBR team, through professionalism, dedication and effective enforcement, would play a key role in achieving this important national objective.

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